How to Buy Gold

There are many markets in the world. You can buy stocks, bonds, or many other things. When you start thinking about buying a physical product it is a little different. Today we want to talk about how to buy gold.

Gold is a precious metal. It has been around since the beginning of time. Since that time it has had value. Precious metals are natural currencies. Gold is in that category. So how do we buy gold?

How to Buy Gold: Buy Physical Gold

We have all seen the commercials. The world is ending and you need physical gold. That is one way to buy gold. You can buy the gold in bricks or coins. There are companies that specialize in this. You can buy a big safe and stuff it full of gold if you want. Physical gold has value anywhere in the world. If you are going to buy physical gold you need to ask yourself how long do you want to hold it? If you buy a brick of gold you are not going to make any money if you sell it the next day.

Another way to buy physical gold is by buying from people who don’t want their gold jewelry anymore. This can be risky if you don’t know what you are doing.

How to Buy Gold: Gold Futures

Another way to buy gold is through gold futures. This is traded on the futures market.

The way to buy gold futures is through Gold futures contracts. A gold futures contract is a legally binding contract for the delivery of gold at some time in the future for an agreed price. The problem with these contracts is that they usually are for large sums of money.

You can still buy the contracts on margin. The problem with that is gold only has to swing by a small amount for the investor to lose a lot of money. Most investors don’t take the physical gold. They usually sell before the expiration date.

How to Buy Gold: Gold ETFs

The last way to by Gold is through what is called ETFs also known as exchange traded funds. Some gold investors or traders use Gold miners ETF’s. These ETFs track the companies that mine for gold.

Another way to buy through ETFs is by buying ETFs that track the actual price of gold. One specific ETF that does that is GLD ETF.

How to Buy Gold: Trading System

If you are interested in trading gold then you will first need to develop or find a gold trading system that you have confidence.

If you have ever read about some of the old traders. Then you know that trading gold in the futures market was something that they did as part of their trading.

If you are going to trade gold then you need a system. We developed the gold trading system for those who want to use the GLD ETF to trade gold.